Currency market developments in Iran affected by elections and other factors affecting daily prices have been accompanied by a general downward trend. Of course, we are witnessing significant fluctuations in the daylight. But for now, the market has not reacted much to the election.
Analysis of the domestic steel market shows that domestic prices have risen without a customer. The rate of ingots in Iran has exceeded the world rate for several days. Continuation of this trend will face major challenges in investing in the steel sector.
In recent months, the sale of Iranian steel crude has become a national flax problem. Due to the prevailing psychological atmosphere in the market and the growth of global steel prices, crude sellers have been given the opportunity to offer the country's steel products below prices. Continuation of these conditions can destroy construction in the country. On the other hand, the conditions of crude steel production in Iran have become alarming.
The cost price of iron production is up to 30% lower than the price that reaches the consumer. People who stand between factories and distributors push up prices in the market. The rise in the price of steel and iron has occurred in recent days in a situation where the market is empty of customers.
Liberalization of steel exports, along with the many opportunities it has, can make conditions difficult for the domestic market. Export laws must be in line with the domestic market in order to see financial efficiency in the steel export sector.
The smooth and economical way for the production chain is to supply all the products in the commodity exchange, which in addition to making the exchanges transparent and the entry of all steels into the exchange, also prevents cannibalism in the next circles and downstream industries.